By Roby Brock
Arkansas’ December revenue collections revealed a decline in net available general revenue of 5.7 percent from the previous year and 5.3 percent below forecast. Total net revenues topped $376.2 million for the month.
All major income categories were down in December. Individual income tax collections were 5.3 percent below expectations, while corporate income taxes settled 7.8 percent below forecast.
December gross receipts — which include sales and use taxes — totaled $159.9 million, 8.3 percent below forecast.
Year-to-date net available general revenues, which totaled $2.25 billion for the first six months of the state’s fiscal year, are down 1.7 percent from last year and 2.4 percent below forecast.
Finance officials said that the low numbers are “due to a mix of declines across all major revenue categories.” They also warned that future state budget cuts would be likely.
Dillard’s sees sales slip in December
Dillard’s reported sales of $1.01 billion for the five weeks ended Jan. 2. One year ago, Dillard’s December sales topped $1.09 billion, which was a 6 percent decline from the previous year.
The department store chain’s sales this December are off 8 percent from December 2008, while same-store sales decreased 7 percent for the five-week period compared to one year ago.
In its most recent quarter, Dillard’s turned an $8 million profit despite declining sales. The company has also been reducing its debt, trimming administrative expenses, and closing underperforming stores. Its stock rose 332 percent in 2009.
Arkansas borrowing from feds tops $222 million
Arkansas’ year-end tab to the federal government to help with unemployment insurance claims topped $222 million. State officials say the number could grow by another $155 million by 2011.
Arkansas had borrowed $222.61 million from the feds as of Dec. 31 to keep up with unemployment claims that have risen sharply during the recession. The state’s unemployment rate was 7.4 percent in November 2009.
Maumelle tops Gadberry growth list in 2009
Little Rock-based Gadberry Group, which provides household and demographic data to retailers looking at site locations for stores, ranked its annual top-growth communities in Arkansas and the U.S.
The rankings are determined through an analysis of census data that includes population growth and other variables such as ethnicity, household income, net worth, economic stability, length of residence and age. In Arkansas, the 9 fastest growing communities in 2009 were, in order, Maumelle, Bryant, Conway, Centerton, Lowell, Cabot, Rogers, Bentonville and Fayetteville.
In the U.S., the fastest growing community was Braselton, Ga., a suburb of Atlanta.
Tax hikes for highways proposed
A state highway panel charged with finding new ways to fund Arkansas’ road construction needs, which top more than $10 billion, has made recommendations for raising taxes to meet those goals.
A subcommittee of the 19-member Blue Ribbon Committee on Highway Finance suggested a new excise tax on wholesale motor fuel and indexing increases in gas and diesel taxes to fund state highway improvements. The recommendations will be discussed next Wednesday by the full committee along with another proposal to peel $425 million annually from state general revenue.
At one time, the study group was also considering a carbon tax, income tax increase and toll roads.
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Roby Brock, a freelance journalist based in Little Rock, writes weekly for the Arkansas News Bureau. His weekly television program airs at 10 p.m. Sundays in Central and Northwest Arkansas. His e-mail address is roby@talkbusiness.net; his Web site address is www.talkbusiness.net.
